The Federal Government has unveiled an ambitious plan to channel up to five per cent of Nigeria’s Gross Domestic Product (GDP) annually into industrial development financing, in a decisive push to reposition the economy towards large-scale production, export competitiveness and job creation.

The commitment is contained in the Nigeria Industrial Plan (NIP), launched in Abuja last week by the Federal Ministry of Industry, Trade and Investment. The framework consolidates fiscal, monetary, export and sector-specific industrial policies into a unified national strategy aimed at accelerating Nigeria’s structural transformation.

Under the plan, government intends to deploy the country’s natural and human capital to drive inclusive and sustainable manufacturing growth, deepen economic diversification and generate mass employment.

A central pillar of the NIP is its bold financing structure. The government plans to recapitalise the Bank of Industry to N3 trillion by 2026, while expanding sector-specific intervention funds, largely domiciled with the Central Bank of Nigeria, to boost the flow of long-term capital to priority industries.

Although the policy outlines substantial funding ambitions, it does not yet provide detailed breakdowns of funding sources or the structure for mobilising the proposed five per cent of GDP allocation.

The plan sets measurable output benchmarks. Manufacturing is projected to contribute 15 per cent to GDP by 2030 and rise to 25 per cent by 2035. The mining sector is expected to expand its GDP contribution to eight per cent by 2030 and 10 per cent by 2035.

Four sectors have been identified for immediate focus: metals and solid minerals, oil and gas, construction, and manufacturing.

Minister of State for Industry, John Owan Enoh, described the framework as a decisive shift in national priorities, signalling a stronger commitment to domestic production and industrial value chain.

A major reform within the framework is the introduction of a consolidated incentive architecture aligned with the Nigeria Tax Act 2025. At the heart of this reform is the new Economic Development Incentive, which replaces the Pioneer Status Incentive.

Under the revised system, tax relief will be tied to measurable outcomes such as investment levels, production capacity expansion and employment generation in priority sectors.

The plan also introduces an Interest Drawback Scheme targeted at Micro, Small and Medium Enterprises (MSMEs). Rather than offering upfront subsidised interest rates, eligible firms will pay commercial lending rates and receive partial interest refunds after meeting agreed performance milestones, including job creation or export growth.

Coordination and Private Sector Partnership

Vice President Kashim Shettima emphasised that successful industrialisation would depend on cross-sector coordination and strong public-private collaboration.

“As we advance the work of industrialisation, we must be clear-eyed about what it demands. It requires deliberate coherence across energy, trade, infrastructure, finance, skills and innovation. Above all, it calls for a purposeful partnership between government and the private sector, working in alignment to deliver sustainable, inclusive growth,” Shettima said.

The policy places significant emphasis on technology adoption and environmental sustainability. Automation, robotics and digital manufacturing are identified as central to future industrial operations, alongside expanded research and development in strategic sectors.

It sets a target of achieving 25 per cent renewable energy usage within the industrial sector by 2030, aligning with Nigeria’s Energy Transition Plan and its net-zero emissions ambition by 2060.

On human capital development, the framework proposes a revamp of Technical and Vocational Education and Training (TVET) programmes to build a high-value, locally relevant manufacturing workforce. It also seeks to harmonise collaboration among academia, public institutions and the private sector to strengthen industrial skills and innovation capacity.

Government officials said the plan comes at a critical stage in the implementation of the African Continental Free Trade Area and is designed to position Nigeria as a net exporter of manufactured goods and a regional supply chain hub.

By promoting local production of critical inputs, including active pharmaceutical ingredients, the policy aims to reduce import dependence, conserve foreign exchange and strengthen domestic value chains.

Backed by a five-year implementation roadmap spanning 2025 to 2030, the NIP outlines strategic objectives, responsible institutions and measurable outcomes. In the near term, officials expect clearer incentives and expanded financing to reduce investor uncertainty and unlock stalled projects.

Over the medium term, the framework is projected to support agro-processing, pharmaceuticals and downstream petrochemicals, expand exports and contribute to employment generation and poverty reduction.

With defined targets, structured financing commitments and performance-linked incentives, the Nigeria Industrial Plan signals a shift toward coordinated implementation, with government stating that success will be measured by increased domestic production, mobilised private capital and sustained export growth.

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